Top Banks Home Loan Details

Buying a house in India is a matter of great joy and pride. When you buy a house you can live there with your loved ones and give them the luxury and peace of mind that they deserve. When you invest in buying a house, it is probably the biggest investment of your life. No ones stopping you if you plan to buy your new house using your savings. However, going for a home loan will not affect your savings to a great extent.

A home loan offers you the upfront money you require to buy a house. However, you must understand that a home loan will only cover 85% of the property value. The remaining 15% has to come from your savings. Before applying for a home loan, it is imperative that you read the details and understand the complete process of applying.

There are several home loans offered by different banks in India. The NBFCs also offer housing loans that are associated with attractive rates of interest.

Let us know about the details of home loans offered by some of the top banks in India.

DBS Home Loan Details

• Pre-closure Chargest: Varies with bank
• Partial pre-payment Charges: Varies with bank
• Loan tenure: 1 Year to 30 Years
• Processing fees: Varies with bank
• Interest Rate (Monthly reducing balance): 8.35% to 18%

SBI Home Loan Details

• Pre-closure Chargest: Nil
• Loan tenure: 30 Years
• Processing fees: 0.35% of Loan Amount, min of Rs.2,000 to max of Rs.10,000 (plus applicable tax)
• Interest Rate (Monthly reducing balance): For women - 8.30% to 8.6%, For General Customers - 8.35% to 8.65% 

ICICI Home Loan Details

• Pre-closure Chargest: Nil
• Partial pre-payment Charges: Nil
• Loan tenure: 3 Years to 30 Years
• Processing fees: 0.50% of Loan Amount (Maximum of Rs.11,800)
• Interest Rate (Monthly reducing balance): For women - 8.45% to 8.80%, For General Customers - 8.50% to 8.85%
• Guarantor requirement: Not require

HDFC Home Loan Details

• Pre-closure Chargest: Nil
• Partial pre-payment Charges: Nil
• Loan tenure: 1 Year to 30 Years
• Processing fees: 0.50% of Loan Amount (Maximum of Rs.11,800)
• Interest Rate (Monthly reducing balance): 8.35% to 8.85%
• Guarantor requirement: Not required 

Axis Bank Home Loan Details

• Pre-closure Chargest: Nil
• Partial pre-payment Charges: Nil
• Loan tenure: 1 Year to 30 Years, Super Saver Scheme - 1 year to 20 years
• Processing fees: 0.50% of Loan Amount (Minimum of Rs.10,000)
• Interest Rate (Monthly reducing balance): 8.35% to 11.75%, Super Saver Scheme – 9.25%
• Guarantor requirement: Not required 

PNB Housing Home Loan Details

• Pre-closure Chargest: Nil
• Partial pre-payment Charges: Nil
• Loan tenure: 1 Year to 30 Years
• Processing fees: 0.50% of Loan Amount (Minimum of Rs.5,900)
• Interest Rate (Monthly reducing balance): 8.35% to 10.25%
• Guarantor requirement: Not required 

Bank of Baroda Home Loan Details

• Pre-closure Chargest: Nil
• Loan tenure: 30 Years
• Processing fees: 0.50% to 0.25% of Loan Amount (Min of Rs.7500 to Max of Rs.20,000)
• Interest Rate (Monthly reducing balance): 8.30% to 9.35% 

IDBI Home Loan Details

• Pre-closure Chargest: Nil
• Loan tenure: 30 Years
• Interest Rate (Monthly reducing balance): 8.35% to 8.65%

Banks May Soon Increase Lending Rates

Interest rates on home loans and car loans may go up in the near future in order to safeguard their margins. This change can be expected to occur as soon as the coming month since the cost the bank incurs on borrowing has risen and they are constantly looking for deposits at a higher rate.

The Reserve Bank of India (RBI) had also demanded that banks to link base rates to MCLR from the 1st of April. This too has an impact on the rise in lending rates, experts believe.

Banking giant, HDFC bank had also increased their MCLR by 10 basis points recently, indicating that several other banks may follow this move. Other banks like IndusInd, Kotak Mahindra, Yes bank, and Axis bank have also spiked their MCLR by 5 – 10 basis points.

The hike in lending rates could have been speculated when banks began to increase the bulk deposit rates earlier. With the State Bank of India (SBI) being the first to do so, all other lenders followed their path not long after this move. The interest rates on one-year deposits that amounted to over Rs.1 crore rose to 6.25% by 200 basis points in a few months.

However, the country’s largest lender hasn’t yet increased their MCLR yet and now offers home loans on several different types of properties. From under-construction, fully built, pre-owned, renovation, repair, etc., the bank has all areas covered in terms of home loans. Furthermore, they also offer home loans as overdraft for customers to adequately use the funds provided by the bank.

Eligibility criteria for a SBI home loan

In order to avail a home loan from SBI, one must meet the following eligibility criteria:

• The individual must be an Indian resident 
• The applicant must be at least 18 years of age
• The applicant cannot be over the age of 70
• The maximum tenure of a SBI home loan is 30 years

Documents required

Account statement

• Bank account statement for the last 6 months 

Property documents

• No objection certificate (NOC) from society or builder 
• Maintenance bill, utility bill, electricity bill, property tax receipt
• Sale deed
• Certificate of occupancy

Identification documents

• ID card from employer 
• Duly filled loan application form
• Passport size photographs
• ID proof : PAN card, driver’s license, passport, Aadhaar card, voter ID (Any one)

For non-salaried individuals

• Qualification certificate in case of a self-employed borrower 
• Tax deducted at source certificate
• Business certificate, if applicable
• Balance sheet and profit and loss statement
• Income tax returns for the last 3 years
• Business address proof

For salaried individuals

• Last 2 year’s copy of form 16
• Income tax returns copy for the last 2 years 
• Pay slip for the last 3 months
• Address proof : Driver’s license, passport, Aadhaar card, electricity bill, telephone bill, gas bill, water bill (Any one)

Documents Required For Loan Against Property

A loan against property is a loan that is disbursed to a borrower with his property used as collateral by the lender. These types of loans are easier to obtain as these are secured loans, making it safer for a lender to approve them. The loan amount for these types of loans usually corresponds with the value of the property and lenders usually do not put that much of a weight-age on an applicant’s income.
The documents required in order to avail a loan against property are mentioned below:

For salaried individuals

• Photo ID proof (Applicant must produce any one of the following)

1.  Applicant’s driving license
2.  Applicant’s PAN card
3.  Applicant’s passport
4.  Applicant’s voter ID

• Address proof of residence (Applicant must produce any one of the following) 

1. Applicant’s ration card
2. Applicant’ electricity bill
3. Applicant’s phone bill
4. Any utility bill of applicant
5. Applicant’s passport

• Ownership of residence proof (Applicant must produce any one of the following) 

1. Applicant’s maintenance bill
2. Applicant’s electricity bill
3. Applicant’s property documents

• Income proof 

1. Pay slip from current employer for the last three months
2. Form 16

• Continuity of job proof (Applicant must produce any one of the following) 

1. Certificate of employment from current employer
2. Job appointment letter from current employer
3. All relevant experience certificates

• Salary proof 

1. One year’s bank statement of the account in which your salary is credited

• Property documentation 

1. Sale deed of the property
2. Maintenance bill of the latest month
3. Share certificate
4. Sanction letter that is provided by the existing banker

• Processing cheque that is required to process the loan 
• Any proof of investment, if any (Assets, fixed deposits, mutual funds, etc.)
• Passport size photograph

For self-employed individuals 

• Photo ID proof (Applicant must produce any one of the following)

1. Applicant’s driving license
2. Applicant’s PAN card
3. Applicant’s passport
4. Applicant’s voter ID 

• Address proof of residence (Applicant must produce any one of the following) 

1. Applicant’s ration card
2. Applicant’ electricity bill
3. Applicant’s phone bill
4. Any utility bill of applicant
5. Applicant’s passport

•  Ownership of residence proof (Applicant must produce any one of the following)

1. Applicant’s maintenance bill
2. Applicant’s electricity bill
3. Applicant’s property documents

• Proof of business 

1. Saral copy of the last 3 years
2. Copy of tax registration, if any
3. License of company registration
4. Shop establishment act

• Income proof

1. Income tax returns for the last three years
2. Copy of audit report, profit and loss statement, balance sheet, etc.

• Copy of bank statement for the last year of both current and savings account
• Property documentation

1. Sale deed of the property
2. Maintenance bill of the latest month
3. Share certificate
4. Sanction letter that is provided by the existing banker

• Processing cheque that is required to process the loan
• Any proof of investment, if any (Assets, fixed deposits, mutual funds, etc.)
• Passport size photograph

 

Things to Remember When You Buy a Second Home

It is a great feeling to own a home when you already have one. This means you have earned and saved substantially to afford two houses, which is indeed a matter of great pride and joy. However, when you are buying a second home, your reason or purpose of making that huge investment should be clear to you. You must pick a location for buying the property as per your need of the property.

If you already have a house and are buying another property as your weekend home, it suggests that the avenue will be treated as a recreational place. So, when you have a house in the city, you will most likely want to buy your weekend home away from the hustle and bustle of your everyday life. This is the place where you would go to take a break and pursue your habits like playing, reading, or doing something for which you do not find time in your daily schedule.

There are 2 reasons for which you can invest in buying a second house:

• To rent out the property or use it for your own requirements.
• As an add-on investment for the long run.

Why do you need a second house?

Many people think that you must only buy a second property if you can make use of it properly by staying in there for a substantial amount of time. Some think that a second house can be treated as a vacation spot where you can stay with your family and enjoy in peace, away from the noisy city-life. However, another group of buyers think a second house can be purchased for generation of income.

Return of Investment prospects of the second house:

The Return of Investment prospects of a second house depends on certain factors mentioned here:

• The location where the second house is situated.
• Rental demand in that particular area.
• Overhead costs like car parking charges, maintenance costs, etc.
• Physical and social infrastructure of the area.
• Frequency of public transport availability.

How to pick a second home that meets your requirements:

When you plan to purchase a second house, one of the key factors that must be remembered is the location of the property. The second home should not be extremely far from your primary home as it might be difficult for you to commute from one house to another. Another thing that plays a major role when you buy the second property is the cost of the second house.

As a buyer, you must understand the supply and demand in the neighbourhood where you intend to buy the property. If rental income is your primary objective after buying the second house, you should purchase the property in an area where a lot of people choose to stay on rent like close to technology parks, office areas, schools, etc.

Bottom line:

It is a great feeling to buy a house once, but to buy another one is a matter of sheer pride and honour. Do a good amount of research before you choose your second home and buy the property that meets your needs and requirements of investing in another house.

Know home loan process.

Tips for purchasing a house in Pune

When you invest in buying a house in Pune, the investment is multi-dimensional. Your house offers you security, satisfaction, and the joy of owning a property. Buying a house is probably the biggest investment that you are going to make and a house will always remain as an asset to you. Thus, buying your house can be considered as a major milestone in your life.

Sometimes, your hard earned money might not be sufficient for purchasing your dream house. This is where home loans come in to play. On an average, a home can stretches over a period of 15 years to 20 years. If you are staying in a rented apartment, buying a house and paying for home loan installments instead of rent makes more sense. The maximum tenure that you can avail for the repayment of a housing loan is 30 years.

It is advisable that you set aside a substantial chunk of your savings for your emergency purposes. Don’t churn out everything for buying a house.

Things to remember when you buy a house on home loan in Pune:

• Location – The location where your property is situated plays an important role when you apply for a home loan. Depending in where your property is in Pune, the home loan eligibility may change. There are areas blacklisted by banks and if your property lies in a blacklisted area, you might not stand eligible for the loan.
• Affordability – Various people in Pune, buying houses for the first time fail to understand the expenses that come after buying the house. Firstly, buying a house does not mean just paying for the property. The legal work, registration charges must be factored in while calculating your affordability towards the flat. After you buy the flat, you will have to pay for the interiors, electrical fittings, painting, etc. All of these will cost a substantial amount of money and you must estimate your total expense accordingly.
• Learn to deal with the builders – Understand what you are signing up for before you pick a property. It is always advisable to go for a background check of the promoter you are signing the deal with. Check if he and the property that he’s building are registered under RERA. Only invest your money when you know that it is completely safe.
• Documentation – Generally, you would be signing a stereotypical agreement when you buy the house. Speak to your lawyer and understand the agreement better. You can recommend specific changes to the agreement and customise to a certain extent, depending upon your needs.
• Understanding the concept of carpet area – The carpet area is the final area that can be utilised for residing inside your property. The built up area is the carpet area plus the area in the balcony, walls, etc. The super built up area includes everything that is a part of the built up area and the garage, lobby, lift, etc.
• Tax benefits – You can avail tax benefits if you invest in a house under the prevalent tax laws.

Bottom line – It is a matter of joy and honour to buy a house. But understand what you are investing in. A well-done research is advised before you pick a property and invest in it.

Are you eligible to book a home under PMAY?

The Pradhan Mantri Awas Yojana (PMAY) is a government initiative intended to provide low-cost housing to the economically weaker sections of society. Its objective is to provide affordable housing to individuals below a certain income group by providing a subsidy on home loans.

Subsidy classification of PMAY

CLSS	Max. area	Max. loan amount	Subsidy on interest	Maximum subsidy	Loan tenure	Max. household income
MIG - II	110 sq. meter	Rs.12 lakh	3% p.a.	Rs.2.30 lakh	20 years	Rs.12 – 18 lakh
MIG	90 sq. meter	Rs.9 lakh	4% p.a.	Rs.2.35 lakh	20 years	Rs.6 – 12 lakh
LIG	60 sq. meter	Rs.6 lakh	6.5% p.a.	Rs.2.67 lakh	20 years	Rs.3 – 6 lakh
EWS	30 sq. meter	Rs.6 lakh	6.5% p.a.	Rs.2.67 lakh	20 years	Rs.0 – 3 lakh

PMAY eligibility

Mentioned below are the eligibility criteria to avail a PMAY subsidy:

• Any individual who is a first-time homebuyer that doesn’t have any property in his/her name
• In case of an unmarried applicant, his/her parents must not own a property in any part of India
• In case of a married applicant, his/her spouse or kids must not own a property in any part of India
• For applicants under LIG or EWS, a woman co-applicant is mandatory to avail the benefits of PMAY
• The applicant and his family should not have availed any housing scheme, including PMAY, previously
• The beneficiary can obtain the home loan only for construction/improvement/purchase of a home

Documents required to obtain the benefits of PMAY

• Aadhaar card
• Sanction letter for the loan
• PAN card
• Buyer builder agreement or ATS copy
• Stamp paper / affidavit

How long does it take to obtain a subsidy under PMAY?

On an average, it may take anywhere between 3 – 4 months to get your application approved.

The PMAY scheme has already helped homebuyers obtain home loans at a subsidised rate, causing a boom in the real estate market. The PMAY scheme is also causing home loan interest rates in banks to drop, indirectly making homes affordable to everybody.

Pradhan Mantri Awas Yojana - Everything there is to know about CLSS

Pradhan Mantri Awas Yojana - Housing for all, is an initiative launched by the Government of India wherein, affordable housing will be provided to the urban poor of the country. The scheme itself has various components of which, the Credit Linked Subsidy Scheme is the most popular. Under this scheme, beneficiaries can avail a subsidy on the interest component of a home loan of up to Rs.2.67 lakh.

However, before you get too excited, there are a few things that you need to consider first. For instance, the scheme is directed primarily towards the people belonging to the Lower Income Groups (LIG), Middle Income Groups (MIG), and Economically Weaker Sections (EWS).

Furthermore, there are three prerequisites that have to be fulfilled before you commence your application to avail the benefits of the CLSS. They are:

1. You or your family should not own an all-weather house in any part of the country.
2. You or your family should not have taken assistance from the Central Government for any housing scheme or applied for the benefits under the PMAY.
3. In case you are married, you and your spouse will be eligible for a single subsidy, irrespective of the ownership status of the house.

After fulfilling these three conditions, the next thing that you need to consider is the income criteria. The maximum interest subsidy that can be availed depends on the annual income of the applicant and the category to which they belong.

• The cap on annual income for those belonging to the EWS and LIG is Rs.6 lakh.
• For the MIG 1 category, the maximum household income should not be more than Rs.12 lakh.
• For the MIG 2 category, the maximum household income should not exceed Rs.18 lakh.

In addition to these, factors like maximum loan amount, maximum carpet area, et cetera, are also taken into consideration when it comes to Credit Linked Subsidy Scheme. This has been explained in the table mentioned below:

Category	Maximum Carpet Area (in Square Metres)	Interest Subsidy (%)	Maximum Loan Amount Considered for Subsidy Calculation, in Rupees	Maximum Subsidy, in Rupees
EWS and LIG	60 sq. mt.	6.50%	Rs.6 lakh	Rs.2.67 lakh
MIG 1	120 sq. mt.	4.00%	Rs.9 lakh	Rs.2.35 lakh
MIG 2	150 sq. mt.	3.00%	Rs.12 lakh	Rs.2.30 lakh

Under the scheme, all the Statutory Towns are covered as per the 2011 Census, along with subsequently notified towns. Regardless of where you live in India, you will be able to avail the benefits of the Credit Linked Subsidy Scheme, provided you meet the aforementioned criteria.

The home loan under the CLSS can be taken for any housing purpose - purchase, construction or enhancement of an existing house. The interest subsidy is calculated only on the maximum home loan amount mentioned for the specific categories and is valid for the duration of your entire tenure. For any home loan taken beyond the specified limits, non-subsidised interest rates will be levied.

More details about the PMAY and the CLSS can be found on the official website of the scheme.